Article Abstract:
Westerners need a basic knowledge of Islamic financing to help customers from the Muslim world. Islamic financing is concerned with social justice, not just profit. The Sharia forbids interest, even if it is not usurious and gambling or related transactions. The prohibition of interest can create substantial difficulties with equity investments. Real estate investment using conventional mortgages is not permissible but solutions which follow Islamic law have been devised. Some Islamic scholars are working on ways Muslims can invest in the West and still follow Islamic law.
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Article Abstract:
An examination of the legal status of Islamic banking indicates that it is required only in Pakistan and Iran. In places such as Kuwait, Saudi Arabia, Syria, Iraq, Libya, and Egypt, Islamic banks are licensed under general or special legislation and interest is not completely ignored. There is an on-going debate about whether Islam prohibits all interest or only usurious interest. The success of Islamic banking and its likely future are analyzed. Islamic financial institutions in the US and the pros and cons of Islamic banking are also examined.
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Article Abstract:
The integration of Islamic finance with infrastructure development has been deemed crucial in enhancing the Muslim community's ability to compete in international finance markets. By underscoring project finance, Islamic countries would not only regain huge profit margins, but allocate considerable financial support in developing bridges and other infrastructures. However, the potential of Muslim banks is currently undermined by lack of standards and apprehension over investment risks.
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